Shares in James Bay Minerals (ASX: JBY) were up around 10% in trading today after the junior explorer delivered a maiden JORC “in the ground” resource of around 1.37 million ounces of gold at its Independence Gold Project in Nevada, in the United States.
This is an upgrade of around 200,000 ounces from its previous non-JORC resource estimate.
James Bay, which has a market cap of around $40 million, has disclosed a high-grade skarn resource – making them ideal for small scale mining - of 984,412oz at 6.67g/t gold.
Around 395,00 ounces of that [resource] are from shallow near surface mineralisation, while the other 984,000 ounces are from a deeper higher grade section of the project where average grades are around 6.67g/t.
The inferred resource also includes a near-surface epithermal indicated resource of 294,395oz at 0.4g/t and inferred resource of 90,702oz at 0.32g/t.
Commenting on today’s announcement, executive director Matthew Hayes told investors that significant mineralisation beyond both the skarn and near-surface epithermal models – which remain open in all directions - strongly suggests a connection between surface mineralisation and deeper skarn material.
Hayes says these factors point to substantial resource growth ahead.
"Our maiden JORC MRE of 984,412 ounces of gold at 6.67 g/t Au positions JBY as one of the ASX’s largest high-grade gold explorers,” executive director Hayes said.
It remains to be seen if separate, known gold deposits join up into one giant gold deposit and only future drilling will tell.
With drill planning for Q1 2025 nearing completion, exploration drilling is targeting near-surface epithermal mineralisation across North Hill and Rebel Peak.
The company will also complete infill drilling to incorporate existing historical mineralisation that sits outside the optimised pit shell.
Drilling to date has focused on expanding near-surface oxide mineralisation, with future drilling programs planned to target the northern half of Independence, as well as areas outside the current resource.
Covering 627 acres, the Independence Gold Project lies in Lander County, Nevada.
The project is owned by Independence Mining, which is an incorporated joint venture between privately held Battle Mountain Resources and Americas Gold Exploration.
James Bay is understood to have executed a definitive term sheet to acquire Battle Mountain and has subsequently acquired the company’s interest in the Independence Project.
The company also has the right to acquire Americas Gold’s interest over a two-year period.
Nevada has consistently been ranked first or second in the annual survey of the world’s best mining destinations by Canada’s Fraser Institute.
At the time of writing, James Bay Minerals Ltd's share price was 56 cents. JBY has a market cap of approximately $40.24 million.
